Brown attacks opponents over inconsistent policies
Gordon Brown refuted suggestions today he had delayed taking action over Northern Rock because the Labour government was preparing for a November general election.
The prime minister denied he had been advised to push for an immediate sale when the lender first ran into difficulties in September.
He also rejected the claim Lloyd’s TSB had made an offer for Northern Rock, providing an immediate private sector solution.
David Cameron, keen to refute Mr Brown’s claims to be a politician that takes tough long-term decisions, said the prime minister had “dithered and delayed” over the need for a total guarantee, the advice to sell the bank straightaway and a potential offer from Lloyd’s TSB.
Mr Brown retorted that the Bank of England and Financial Services Authority supported the government’s actions.
Sparring during prime minister’s questions, Mr Brown reminded the Conservative leader that the opposition had also backed the government in September and challenged him as to whether this was the case.
Mr Cameron refused to answer Mr Brown’s question as to whether he still supported the government’s approach but said nationalisation – now described as an “option” by Mr Brown and the chancellor – would be a “catastrophe”.
Mr Brown once again attacked his opponent’s policies. He said the “substance” of the issue was the threat of wider instability if the government had not intervened to guarantee the bank’s deposits.
The prime minister accused the Conservatives of lacking any real answer on Northern Rock, claiming the only change offered by the Tories is in their policies.
Mr Brown told MPs: “To go backwards and forwards as he [Cameron] is doing would put the stability of the economy at risk.”
The prime minister also accused the new Liberal Democrat leader of inconsistency, with the infamous “Calamity Clegg” document upstaging Nick Clegg’s attempts to press Mr Brown on the housing market.
Referencing the dossier compiled by one of Chris Huhne’s campaign team during the Lib Dem leadership race, Mr Brown said: “On every major social and economic issue the leader of the liberal party has flip-flopped and keeps flip-flopping”.
Pointing to predictions from the Royal Institution of Chartered Surveyors, Mr Clegg said home repossessions were set to “rocket”, blaming it on irresponsible lending.
Mr Brown said he was determined to maintain low interest rates, dependent on low inflation and “therefore a decent economic policy which I’m afraid his party does not have”.
The prime minister was also forced to defend his beleaguered work and pensions secretary Peter Hain, pointing to rising employment, falling incapacity claimants and more long-term unemployed returning to work.
“That is why I have confidence in what he is doing,” Mr Brown said.
The prime minister also rejected suggestions the government’s official measure of inflation underestimates the real cost of living.
He agreed energy and food prices have risen but insisted this was true everywhere in the world.
The fact British inflation still runs at 2.1 per cent in the face of global instability is proof of economic strength, he argued.
